Welcome to the Bitcoin Street Journal. Bitcoin
Market Update, Episode 10 on Week 20, Friday,
May 26, 2023. Stay ahead of the game and avoid
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your Bitcoin investment by tuning in daily for
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Subscribe now to stay updated on the latest in
the world of Bitcoin. In today's episode, we'll
cover Gemini's expansion into Europe and their
plan to stay in the US despite regulatory pressure,
Bitcoin and Ethereum's performance amid an options
expiry event and loss of trader sentiment, as
well as DJ Steve Aoki falling victim to crypto
theft in a phishing scam. the cryptocurrency
exchange run by Tyler and Cameron Winklevoss,
has chosen the Republic of Ireland as its European
home. Amid increasing regulatory pressure in
the United States, the Winklevoss twins see the
Emerald Isle as an entry point into the rest
of Europe. The decision followed a meeting between
the crypto co -founders, the Irish Prime Minister
Leo Varadkar, and the representatives of the
Industrial Development Agency responsible for
foreign investment into Ireland. Gemini CEO Tyler
Winklevoss stated that markets and crypto assets,
MyCA, is that common sense regulation. Gemini
was the first crypto company to be registered
as a virtual asset service provider by the Central
Bank of Ireland in July 2022. And in an interview
with the Irish Times, Gemini's president Cameron
Winklevoss said that Ireland will be the exchange's
entry point into the rest of Europe. once the
MyCA regulation is fully implemented across the
EU by 2025. Gemini, the cryptocurrency exchange
co -founded by the Winklevoss twins, has been
charged by the Securities and Exchange Commission,
SEC, for selling unregistered securities related
to their Earn program, which has since been terminated.
The penalty prompted Gemini's co -founders to
look for alternative jurisdictions. Cameron Winklevoss
stated that there are so many headwinds right
now in the US, it's hard to get anything done
there. And so in order to keep building our business
and invest in hiring, we have to look elsewhere.
They visited London and met with officials at
the Financial Conduct Authority, FCA, and the
Bank of England. Despite considering the UK as
a potential new base, they have no intention
of leaving the US entirely. According to Cameron,
We're not leaving the U .S. We're going to continue
to fight the good fight there. But we also understand
that you can vote with your feet, and that's
our right. And we will do that when faced with
a hostile environment. It's been a crazy day
in the cryptocurrency world as Bitcoin and Ethereum
faced a hefty options expiration event this morning.
Many analysts were worried about what the event
might bring, but it looks like both cryptos have
held their ground. Earlier today, Bitcoin rose
1 % while ETH jumped 1 .6%. Although BTC is now
trading at $26 ,509, down 11 % over the past
30 days, and ETH has dropped 4 .6%. They managed
to stay afloat despite the uncertainty induced
by the options expiration event. Speaking of
the options expiration event, Bitcoin options
on Deribit expired this morning with a notional
value of $2 .26 billion and $1 .25 billion for
Ethereum, which definitely raised some concerns
in the market. The Bitcoin options market had
a put to call ratio of 0 .44, which indicates
that traders mostly held bullish positions. Similarly,
for ETH, every put option had two call open options
opened. It's likely these bullish positions are
why the price reacted negatively before the expiry.
Now, let's take a look at what option call contracts
represent. They're financial derivatives that
give the holder the right but not the obligation
to buy a specific asset at a predetermined price.
For instance, a may call option for a strike
price of $27 ,000 would mean that for the buyer
to turn a profit, the price must be higher than
$27 ,000 at its expiration. Usually, the market
has a tendency to fluctuate toward the maximum
pain point close to option expiration. And today's
maximum pain point for Bitcoin was $27 ,000 and
$1 ,800 for Ethereum, roughly current prices.
It's also worth noting that the low liquidity
market conditions have exacerbated the impact
of the options expiration event. Bitcoin's liquidity
dried up in Q2 2023 due to events such as the
end of Binance's zero -fee trading program, the
banking crises, and macroeconomic issues like
the ongoing debt ceiling debate in the United
States. Co -founder of crypto research outlet
Jarvis Labs, Ben Lilly, measured the decline
in liquidity using the cumulative volume Delta,
CVD, metric for spot, and futures markets. CVD
measures the cumulative change in the volume
of buy and sell orders as the price moves. Overall,
things are looking stable for Bitcoin and Ethereum
amidst the recent options expiration event. Although
both cryptos have experienced some losses over
the past weeks, they're still holding on and
remaining resilient. Today, we're going to talk
about the current state of Bitcoin trading and
the market sentiment. As you may know, many Bitcoin
traders and speculators usually buy the dip whenever
the price drops. However, it seems like this
sentiment is decreasing at the moment. On May
26th, on -chain analytics provider Santiment
noted that traders are now scared to buy bigger
dips and mentions of buying the dip are currently
dormant. This suggests a lack of market sentiment.
And historically, this type of fear, uncertainty
and doubt has been good to capitalize on. In
addition to this, Bitcoin prices have gone down
almost 15 % since mid -April. There is also a
lack of volume at the moment, indicating that
this dip isn't low enough yet to entice more
buying pressure. Santiment reported that there
has been an increase in selling at a loss among
crypto holders. This means that using the MVRV,
market value to realized value metric, the vast
majority of crypto assets are flashing underbought
signals across the sector. But what exactly is
happening with Bitcoin? Well, Glassnode has noted
that the Bitcoin price has fallen to the golden
Fibonacci ratio of minus 61 .8%, which is at
$26 ,200. This is where prices had fallen to
a few hours ago. Since then, BTC has nudged up
slightly to just below $26 ,500 at the time of
writing, but remains bearish in the short term.
Crypto markets fell to a 10 -week low on May
25th with total capitalization falling to $1
.14 trillion. They have only recovered marginally
during the Friday morning Asian trading session,
suggesting that more consolidation could be ahead
over the weekend. BTC prices have added half
a percent on the day, but remain sideways, hovering
just above long -term support levels. A breakdown
from here would find further support at around
$25 ,000. Ethereum prices fell to $1 ,770 yesterday,
but have since recovered to trade at $1 ,807
at the time of writing. The only altcoins posting
a measurable gain are XRP, Matic, and LTC. each
having gained 3 % on the day. Have you heard
about the recent Twitter hack that led to the
loss of at least $170 ,000 worth of cryptocurrency
assets? Well, it happened to American music producer
and DJ Steve Aoki. Hackers gained access to his
Twitter account and used it to conduct a phishing
scam. The attackers tricked users into believing
that Aoki had joined the dollar PSIOP token train,
thus offering them free tokens. They then provided
a link for the users to claim the tokens. Unfortunately,
some individuals fell victim to the scam and
ended up losing a hefty sum of approximately
$170 ,000 in Ether, ETH, to the scammers. What's
even more concerning is that a well -known crypto
influencer retweeted the phishing scam post for
clout or internet fame. This further enabled
the scammers to reach even more victims. Phishing
scams like this are increasingly common in the
cryptocurrency world. They involve social engineering
tactics that trick users into revealing their
login credentials, such as usernames and passwords.
Once the attackers get ahold of this information,
they can easily access the victim's account and
potentially steal more sensitive data. This isn't
the first time that crypto investors have been
targeted with phishing scams. In fact, over the
past few months, there have been several sophisticated
frauds trying to dupe investors out of their
digital assets. The sandbox, for instance, had
an unauthorized third -party gain access to one
of its employees' computers, which was then used
to send a false email claiming to be from the
company. With the increasing number and scale
of cryptocurrency -related phishing scams, it's
important for investors to be vigilant and prioritize
security in managing their digital assets. Today,
we discussed Gemini's expansion to Ireland, their
plans to stay in the US despite SEC targeting,
Bitcoin and Ethereum's performance during a $3
.5 billion options expiry event, the weakening
sentiment among Bitcoin traders, and DJ Steve
Aoki's Twitter account getting hacked for $170k
worth of crypto. Thanks for listening to today's
episode. I'll see you guys at the next one. And
don't forget to subscribe.